Good evening StockBandits!
Trading continued today, but there sure wasn’t much to show for it by the end of the session as once again we saw very minor net changes as the indexes took a rest. The S&P 500, DJIA and NAZ each painted inside days, respecting Monday’s ranges. It almost felt like July 4th week with the extremely light volume (lightest of the year for NAZ/S&P/DJIA), but that’s still a month away!
Despite making no progress today, the bulls did the next best thing, which was to rest. Not allowing prices to slip and give up ground is the second-best scenario for the bulls, so we’ll see if this lateral consolidation can lead to a return of strength once it comes to completion. The S&P certainly deserves to take a breather after the run it has had, but the DJIA is flirting with a breakout failure and the RUT is still dealing with recent technical overhead.
It’s still a mixed bag out there, which means staying light on our feet is best at this juncture. There are only a few setups which really interest me here, but given the lack of movement and the diminishing (and already light) volume, that’s fine by me. This is not a time to overtrade.
Let’s get to the charts.
NAZ – The NAZ painted an inside day today with a range of less than 25 points. Volume looked like a pre-holiday session and that’s going to need to change if this index is going to make any meaningful headway in either direction. Tonight, price ended (fittingly) right in the center between 4286 (next resistance) and 4185 (unfilled gap). Those are the two numbers to watch.
SP500 – The S&P saw a very narrow range today but yet another finish near the high of the session, which has been the routine of late. Today’s was the lightest volume we’ve seen in all of 2014 (since the last week of December), but if this index is finally resting then that’s actually a good thing for the bulls.
RUT – The RUT saw another minor decline today but finished off the session low. There’s still decent potential that a higher low is formed once this dip is completed, which would benefit the bulls.
DJIA – The DJIA slipped back beneath 16735 today, but only by 11 points. That is technically a failed breakout for now, but it’s likely too early to count out the bulls given today’s volume was the lightest in over 5 months.
Notable Names:
TWTR is looking coiled here for another pop but price needs to clear the trend line first to set it in motion. I like this one for a single-day play above $32.80, but given the market indecision and the very brief recent bounces I’ll just look to grab the initial move rather than stick around for a swing.
YELP recently broke out of a multi-month downtrend channel and showed some nice upside continuation despite light volume. It has pulled back over the last few days and looks to be getting reset. I like it for a single-day play above $65.60, but am not interested in initiating a swing from this relatively small base and with such light volume in recent weeks.
BBY is back facing resistance tonight after a breather and once again looks good for a low-level breakout play as it attempts to get into the unfilled gap from January. I like this one for a single-day play to participate in the initial breakout move if it occurs.
WDAY is a lively stock which has been all over the map lately. Tonight it looks to be trying to stabilize after a steep pullback and a turn back up could snap prices higher. Given its volatility, I’m only interested in a single-day play here if price can clear $76.75.
VRTX is still basing here so I’ll set up another single-day play on the long side in case price can clear $73.60 and get going. Due to this being a biotech stock, I’m not interested in an overnight swing, but short-term resistance is well-defined so I would like to participate in the initial push through it if it happens on Wednesday.
New Swing Trade Candidates:
No new swing candidates tonight.
Bullish Watch (click for charts)
Bearish Watch (click for charts)
Trade Like A Bandit!
Jeff
